Increased allocations under NHB and PMAY-Gramin will enable larger funding available to home-buyers and developers at a lower-cost

- Sanjay Malhotra, CEO, Emaar India Sanjay Malhotra, CEO, Emaar India, on the Union Budget 2017-18: The Budget presented focusses on ramping up spending on infrastructure, provides the necessary impetus to the ‘Housing for All’ programme, and continues the structural reforms initiated a couple of years ago. The agenda of Transform, Energise & Clean India shall improve the quality of governance and quality of life. The move from discretionary administration to policy based administration is visible in the budget proposals. The long-standing demand from real estate industry saw the light of the day, with affordable housing segment getting the infrastructure status. This, along with increased allocations under NHB and PMAY-Gramin, will enable larger funding available to home-buyers and developers at a lower-cost, and also make the sector eligible for various incentives. Proposals like reduction of holding period for the purposes of long term capital gains tax from three years to two years, changing the base rate of indexation to 1.4.2001, shall provide the necessary respite to the property owners and also making property an attractive investment option. Being one of the largest employers in the economy and contributing 6 per cent of the GDP, the revival of real estate sector needs continued support with more such measures, which will also have a multiplier effect on various sectors that provide material and equipment for construction and development.